Gunwharf Quays chain Patisserie Valerie needs £20 million to avoid financial collapse

Cornelia Mascio
Ottobre 15, 2018

This afternoon Patisserie Holdings chairman Luke Johnson offered up to £20 million in loans in an effort to keep the company afloat while it looks to raise £15 million by issuing new shares.

Funds raised through the share placement will be used to pay back around half the money loaned by Mr Johnson, as well as to meet outstanding liabilities including a major tax bill owed to HM Revenue & Customs.

Yesterday Patisserie Holdings said: 'The company, in conjunction with its professional advisers, has during the last 24 hours, undertaken further investigation into the financial status of the company.

Yesterday the chain's owner, Patisserie Holdings, announced: "Without an immediate injection of capital, the directors are of the view that that is no scope for the business to continue trading in its current form".

Hertfordshire Police told the BBC: "A 44-year old man from St Albans has been arrested on suspicion of fraud by false representation".

It says statements on the cash position of the company were mis-stated and subject to fraudulent activity and accounting.

A statement disclosed "a material shortfall between the reported financial status and the current financial status of the business", adding that without "an immediate injection of capital", the company could not continue trading stocks.

Stores are still trading, although a branch in Hammersmith was shut today after a landlord terminated its lease due to non-payment of rent.

"Following the initial investigation, the directors can confirm that the group has net debt of approximately £9.8m", the statement said. "We are determined to understand the full details of what has happened and will communicate these to investors and stakeholders as soon as possible".

The chairman of crisis-hit Patisserie Valerie is stumping up £20m to avert the chain's financial collapse.

Mr Marsh was arrested and later released on police bail.

To compound its troubles, Patisserie Holdings has also received a winding-up petition for its principal trading unit Stonebeach, with a hearing now scheduled for October 31.

Mr Johnson, a serial entrepreneur, is the largest shareholder in Patisserie Holdings, and had a 37% stake in the business ahead of the rescue deal.

It relates to £1.14 million owed to HMRC and was filed at the High Court of Justice, Companies Court.

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